QUESTION: 33

Which of the following is important to ensure when validating the results of a frequency analysis?

Estimates used during the analysis were based on reliable and historical data.
The analysis was conducted by an independent third party.
The analysis method has been fully documented and explained.

Answer(s): A

Explanation:

When validating the results of a frequency analysis, it is important to ensure that estimates used during the analysis were based on reliable and historical data. Here's why:
Estimates Used During the Analysis Were Based on Reliable and Historical Data: This ensures that the analysis is grounded in reality and reflects actual historical trends and patterns. Reliable data enhances the accuracy and credibility of the analysis, making the results more trustworthy and actionable.
The Analysis Was Conducted by an Independent Third Party: While this can add an element of impartiality, it is not as critical as the accuracy and reliability of the data used. The focus should be on the quality and relevance of the data.
The Analysis Method Has Been Fully Documented and Explained: Documentation is important for transparency and reproducibility, but it does not directly impact the accuracy of the frequency estimates. The reliability of the data is paramount.
Therefore, ensuring that estimates are based on reliable and historical data is the most important factor in validating a frequency analysis.

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QUESTION: 34

Which of the following is the objective of a frequency analysis?

To determine how often risk mitigation strategies should be evaluated and updated within a specific timeframe
To determine how many risk scenarios will impact business objectives over a given period of time
To determine how often a particular risk scenario might be expected to occur during a specified period of time

Answer(s): C

Explanation:

The objective of a frequency analysis is to determine how often a particular risk scenario might be expected to occur during a specified period of time. Here's the explanation:
To Determine How Often Risk Mitigation Strategies Should Be Evaluated and Updated Within a Specific Timeframe: This pertains to the management and updating of mitigation strategies, not the core purpose of frequency analysis.

To Determine How Many Risk Scenarios Will Impact Business Objectives Over a Given Period of Time:
This relates to impact analysis rather than frequency analysis. Frequency analysis focuses on the likelihood of specific events.
To Determine How Often a Particular Risk Scenario Might Be Expected to Occur During a Specified Period of Time: This is the primary objective of frequency analysis. It involves calculating the probability of specific risk events occurring within a certain timeframe, helping organizations understand and prepare for potential occurrences.
Therefore, the main objective of frequency analysis is to determine the expected occurrence rate of specific risk scenarios within a given period.

Reference:

ISA 315 Anlage 5 and 6: Detailed guidelines on risk assessment and analysis methodologies. ISO-27001 and GoBD standards for risk management and business impact analysis.

These references provide a comprehensive understanding of the principles and methodologies involved in IT risk and audit processes.

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QUESTION: 35

A risk practitioner has been asked to prepare a risk report by the end of the day that includes an analysis of the most significant risk events facing the organization.
Which of the following would BEST enable the risk practitioner to meet the report deadline?

Delphi method
Markov analysis
Monte Carlo simulation

Answer(s): A

Explanation:

The Delphi method is best suited for preparing a risk report with an analysis of the most significant risk events facing the organization within a short deadline. Here's why:
Delphi Method: This method involves gathering expert opinions through a series of questionnaires, which are then aggregated and shared with the group for further refinement. It is a quick and effective way to reach a consensus on significant risk events due to its iterative process of anonymous feedback and revisions. This method can provide a structured and comprehensive analysis in a limited time frame.
Markov Analysis: This is a stochastic process for modeling random systems that transition from one state to another. It requires substantial data and time to analyze probabilities of different states, making it less practical for a quick report.
Monte Carlo Simulation: This method uses random sampling and statistical modeling to estimate the probability of different outcomes.
While highly accurate and useful for complex risk scenarios, it is time-consuming and data-intensive, making it less suitable for a same-day deadline. Therefore, the Delphi method is the best option for quickly preparing a risk report with significant risk events.

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QUESTION: 36

Which of the following is the MOST likely reason to perform a qualitative risk analysis?

To gain a low-cost understanding of business unit dependencies and interactions
To aggregate risk in a meaningful way for a comprehensive view of enterprise risk
To map the value of benefits that can be directly compared to the cost of a risk response

Answer(s): A

Explanation:

A qualitative risk analysis is most likely performed to gain a low-cost understanding of business unit dependencies and interactions. Here's the explanation:

To Gain a Low-Cost Understanding of Business Unit Dependencies and Interactions: Qualitative risk analysis focuses on assessing risks based on their characteristics and impacts through subjective measures such as interviews, surveys, and expert judgment. It is less resource-intensive compared to quantitative analysis and provides a broad understanding of dependencies and interactions within the business units.
To Aggregate Risk in a Meaningful Way for a Comprehensive View of Enterprise Risk: While qualitative analysis can contribute to this, the primary goal is not aggregation but rather understanding individual risks and their impacts.
To Map the Value of Benefits That Can Be Directly Compared to the Cost of a Risk Response: This is typically the goal of quantitative risk analysis, which involves numerical estimates of risks and their impacts to compare costs and benefits directly.
Therefore, the primary reason for performing a qualitative risk analysis is to gain a low-cost understanding of business unit dependencies and interactions.

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QUESTION: 33

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QUESTION: 34

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QUESTION: 35

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